World Bank to Invest in Bonds
Of Poor Nations in Local Currencies

By

Bob Davis

Updated Oct. 5, 2007 12:01 a.m. ET

WASHINGTON -- The World Bank said it will start a $5 billion fund to invest in local-currency denominated bonds in poor nations.

The fund's goal is to increase investment by Western pension funds and Asian nations with bulging reserves in countries that are considered relatively risky bets. The World Bank also hopes to boost the ability of poor nations to borrow in their own currencies rather than in dollars or euros. That would help...